Real Estate Agent · Cleveland, OH · Member since 2024 · 37 posts · 22 votes
223 price reductions. 157 sales.
That happened in the Cuyahoga County residential income property market in just the last 30 days.
More sellers reduced their price than actually sold their property.
If your residential income property is currently for sale, that should get your attention. The market has shifted, buyers have pulled back, inventory is building, and sellers are now competing harder for fewer transactions.
Here's what the last 30 days look like:
277 new listings hit the market.
157 residential income properties sold. 223 sellers reduced their asking price. 42 listings expired without selling. 584 active listings are currently on the market.
Those aren't signs that residential income properties have stopped selling. They are signs that the rules have changed. And sellers who recognize that early have a major advantage over sellers who keep waiting for the market to come to them.
Coral Springs, FL · Member since 2018 · 487 posts · 106 votes
3w
Aiden, that ratio of price reductions to sales is the metric that matters more than any headline. 223 cuts to 157 sales means the market is telling you something clear — asking prices are still too high for where buyers can underwrite.
I'm looking at a similar dynamic in Broward County from the tax deed side. The distressed multifamily and income properties that are sitting unsold at auction are the ones where the opening bid is still anchored to 2022 values. The ones that actually get bid on are priced for today's cap rates, not yesterday's.
The 42 expirations are interesting too. Those are sellers who tested the market and got no bites at all. In my experience those turn into the most motivated deals 6 to 12 months down the road — once the carrying costs and the reality of the market start to weigh on them.
For buyers watching this, the opportunity is in the gap between where sellers think their property is worth and where the numbers actually pencil at current rates. If you can underwrite to today's debt cost and still cash flow, you're buying into a market that will reward you when rates eventually come down. The mistake is underwriting for a rate cut that may not come fast enough to save your hold period.
Real Estate Agent · Cleveland, OH · Member since 2024 · 37 posts · 22 votes
3w
I completely agree. I was actually discussing this with a colleague yesterday. We have to place offers based on what's in front of us today—current rates, inventory, pricing, etc. Sometimes that means getting creative with the structure of a deal to make sure it cash flows at higher interest rates.
There's no guarantee rates will come down, but there's also no guarantee they won't go higher. I'd rather underwrite based on today's numbers and find ways to make the deal work than sit on the sidelines waiting for conditions to change. The numbers have to work today, for buyer and seller.